Lockheed earnings increase 23% in first quarter

The nation's largest defense contractor earned $933 million, or $2.87 a share, in the January-to-March period — a 23 percent jump from the year-ago quarter. Revenue slipped nearly 4 percent to $10.7 billion over the year.

Lockheed was boosted by its work on the next-generation F-35 fighter jet — part of which is built in Orlando — and other weapons developed in Central Florida. Sales rose by $50 million, for example, in its missile-guidance programs for Apache helicopters, F-16s and other combat aircraft.

The company beat the consensus Wall Street profit estimate of $2.53 a share and fell just short of the revenue forecast of $10.9 billion, according to Thomson Reuters' analyst survey.

Lockheed also raised its earnings forecast for 2014 to between $10.50 and $10.80 per share — up from the earlier range of $10.25 to $10.55 set in January. There was no change in the revenue forecast for 2014.

Among other factors, the company cited higher revenues from its F-35 Joint Strike Fighter contract — $190 million in the first quarter alone. Lockheed's Orlando missiles group produces weapons-targeting and other systems for the F-35. The company's Orlando training and simulation unit provides F-35 flight-training simulators and support services.

Operating profit rose in nearly all Lockheed business sectors — including Missiles & Fire Control and Mission Systems & Training, which together employ nearly 7,000 in Orlando. The lone sector to post a lower profit was the information systems and global solutions operation. Lockheed took a $30 million charge related to job cuts in that unit.

Revenue fell, however, in every segment except Aeronautics, the prime contractor on the F-35 and other major aircraft programs. Lockheed's Orlando missiles group, for example, recorded a $30 million decline in sales of laser-guided Hellfire missiles for the Apache.

Overall, the company cited ongoing lower military spending related to deficit-reduction budget cuts, the end of U.S. war operations in Iraq and the pullback in Afghanistan.